Zero Reporting

Zero reporting is a collection of financial or accounting documents   ( Zero balance ), tax ( zero declaration ) and statistical reporting, which are provided by taxpayers to the regulatory bodies of the Russian Federation in accordance with the requirements of the law in the absence of financial and economic activities in the reporting period.

According to the current legislation, taxpayers are considered any legal and natural persons, including individual entrepreneurs (IP), on which the law was charged with the duty to pay taxes.

The lack of financial and economic activity suggests that during the reporting period there were no transactions on the taxpayer's settlement accounts, funds were not received and were not written off. The reasons for the lack of financial and economic activities of the taxpayer are possible and can not be the subject of interest of the controlling bodies.

Zero balance is the balance sheet in which, for the reporting period, the balance sheet currency does not exceed the authorized capital and in the profit and loss account, the final profit is zero or negative.

The zero balance and profit and loss account are filled in and handed over only by organizations that apply the general taxation system (OCO or OCH). Terms of delivery, as well as the usual balance: quarterly, not later than the 30th day of the month following the quarter, the annual balance sheet is from 1 to 31 (in a leap year - 30).

Zero declaration is a kind of tax return, a form of zero tax reporting.

Under the law, a taxpayer must provide a tax return for each tax payable by that taxpayer, unless otherwise provided by law. If the commercial activity was not conducted, and there was no movement of funds in the accounts, the taxpayer can provide one zero declaration for all types of taxes. Therefore, quite often the zero declaration is called zero reporting.

Most often, the zero declaration (zero reporting, zero balance) is submitted in the following cases:

1. A taxpayer, for example an IP or a Limited Liability Company (LLC), received a certificate of state registration, but did not carry out commercial activities, however, the deadline for submitting reports has already come.

2. The financial and economic activity of the taxpayer has a pronounced seasonal orientation. Then, in the season when there is an active commercial activity, for the reporting periods, usual tax and financial statements are compiled . In the off-season, when the movement of funds on accounts ceases, it is better to use zero reporting (zero declaration).

3. The taxpayer suspended the activity, but formally considered legally an operating entity. That is, there are no debts to the state, partners, clients, employees, and there are no financial and economic activities either. There is no cash flow on the accounts.

A zero declaration is submitted only for the following taxes:

● tax levied on a simplified taxation system (USO or USN);

● Corporate income tax (IP does not pay);

● 3-NDFL - tax on personal income (for IP on OCHO);

● VAT - value added tax (if there is no exemption);

● Information on the average number of employees - zero people (per year).

When completing the zero declaration, all field variables must be zero or remain empty, only the cover sheet, section 1 (Organization details) and 2 (OKATO Code, KBK) should be filled in.

For all other taxes, if there is no object of taxation, a zero declaration is not provided. At the same time, it should be emphasized that if the tax base is zero after applying your tax benefits, then the reporting is no longer zero and it is necessary to fill in the usual tax declarations.

There can not be a zero declaration on a single agricultural tax, since it entails the loss of the right from the beginning of the year.

A contentious issue at the moment remains the filing of a zero declaration on UTII. According to the current tax code for this tax, no reporting is provided for zero, but is often taken exceptionally. For example, a zero declaration on UTII will be accepted in the Tax Inspectorate in case of temporary incapacity for PI.

The zero declaration is submitted once a year on the USN - until April 30 (for the IP) and until March 31 (for legal entities), and when the taxpayer is liquidated - for an incomplete year. On UTII and VAT - on a quarterly basis, until the 20th day of the month following the reporting quarter, under the Profit Tax - quarterly, until 28th. On 3-NDFL - once a year, until April 30.

Zero reporting is submitted not only to the tax inspectorate, but also to extra-budgetary funds of the Russian Federation, such as the Social Insurance Fund (FSS) and the Pension Fund of Russia (PFR).

Forms of RSV-1 and 4-FSS are filled and submitted quarterly, if from the beginning of the reporting period the taxpayer did not make any payments to individuals. Legal entities are required to file accounts, including zero, always. IP, only if he had hired workers, and he registered as an employer, and now he has dismissed all workers, but he has not withdrawn from the account.

Zero statistical reporting does not give up, only a zero balance is provided.

Result: The zero declaration is provided in the reporting period only in the absence of financial and economic activity and confirmation of this is the complete absence of any transactions on the taxpayer's accounts.

If in the reporting period there was an economic result of commercial activity (even if it was zero profit or loss) and / or payments were made to individuals, and accordingly there were funds flow on the account, then it is necessary to submit to the supervisory and controlling bodies the usual financial and tax reporting.

The only exception is such a taxpayer's activity, in which there is no subject of taxation.